ECB’s Herodotou: Will Be Rate Cuts This Year Unless Something Unexpected Happens

1 February 2024

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Constantinos Herodotou on Thursday said that there would be interest rate cuts this year, barring unanticipated events.

According to various Cypriot media, Herodotou, who heads the Central Bank of Cyprus, said in a meeting with his country’s finance minister, ‘We are taking into account the progress made and I would say there will definitely be some interest rate cuts within 2024, unless we see some unexpected developments.’

Herodotou warned against lowering borrowing costs hastily.

‘It is important to say that the decrease of interest rates should not start too soon because then inflation may return, and that will be a negative development, because then we will have to act again with measures to limit it’, he said.

‘So, based on the data, we have to see when it is justified to see a decrease in interest rates within 2024’, he said.